Brief
McDonald’s expands AI pricing tool to suggest Big Mac prices
The fast‑food chain says the tool only offers suggestions, while franchisees report pressure to follow its recommendations.
By Felo News Desk · Published
McDonald’s is rolling out an artificial‑intelligence‑driven pricing tool that recommends menu prices to franchisees, according to a Reuters report cited by the New York Post.
What happened
The algorithm analyses sales data from roughly 14,000 U.S. restaurants and local competitor pricing to estimate "customer willingness to pay" in each area. In Fresno, California, the tool suggested a $5.69 price for a Big Mac, while a nearby store was charging $6.89.
What the reports add
Reuters said franchisees say the tool has widened price gaps for identical items within the same neighborhoods. The AI platform also incorporates public pricing from rivals such as Wendy’s and Burger King, which both deny using AI for pricing.
What was said
"These speculative and uninformed claims attempt to recast a standard business practice as something controversial. AI does not set the price of a Big Mac or any other menu item," a McDonald’s spokesperson told The Post, as reported by Reuters.
"The pricing portal is a tool, not a mandate, designed to provide restaurant‑specific recommendations to help franchisees deliver value for customers and make informed business decisions," the spokesperson added.
How it came about
McDonald’s has been investing heavily in AI, highlighted in its recent $8.5 billion "NEXT" strategy covered by Felo News on September 25. The pricing tool is part of that broader push to modernise operations and personalize the customer experience.
Key facts
- McDonald’s AI tool analyses data from about 14,000 U.S. restaurants to suggest local prices. (nypost.com)
- In Fresno, the suggested price for a Big Mac was $5.69, while a nearby store charged $6.89. (nypost.com)
- McDonald’s says the tool only offers recommendations; franchisees set final prices. (nypost.com)
What we don't know yet
- Exact number of franchisees currently using the AI pricing tool
- Details of any regulatory inquiries into the pricing practice
Sources
- [1] nypost.com — originally reported as “McDonald’s pushes AI tools that suggest Big Mac prices based on ‘customer willingness to pay’”
